Dangote Refinery Reportedly Suspends Petrol Sales, Hikes Prices Nationwide
- Dangote Refinery suspends Premium Motor Spirit sales amid maintenance and rising demand pressure
- Dangote's decision halts petrol supply arrangements, signalling a strategic operational realignment
- Market reactions indicate downstream implications as fuel supply dynamics shift in Nigeria
Dangote Petroleum Refinery and Petrochemicals FZE has reportedly suspended the sale of Premium Motor Spirit (PMS), effectively cancelling all existing petrol deal recaps with customers across the country.
Legit.ng cannot independently verify this, as the refinery has yet to confirm the report.
Source: Getty Images
The development, which has already sent ripples through Nigeria’s downstream oil market, comes amid surging demand and ongoing maintenance on critical processing units at the Lekki-based facility.
In a notice circulated to counterparties and sighted by Petroleumprice.ng on Monday, the refinery informed customers that all active PMS deal recaps were no longer valid.
The communication, signed by the Group Commercial Operations team, did not indicate when new terms would be issued or when revised delivery schedules could resume.
According to a report by PetroleumPriceNG. deal recaps typically outline agreed volumes, pricing benchmarks, delivery timelines, and payment conditions.
Their sudden cancellation effectively places previously agreed petrol supply arrangements on hold, signalling a temporary reset of Dangote’s gasoline trading operations.
Maintenance forces operational realignment
Market sources link the decision to a mix of operational adjustments and mounting demand pressures.
At the centre of the development is a planned, short-term shutdown of the refinery’s crude distillation unit (CDU), a core facility that processes crude oil into feedstock for downstream units.
Shipping and flow data show that crude inflows into the refinery slowed significantly in January, averaging about 290,000 barrels per day, down from roughly 440,000 barrels per day recorded in December.
With lower feedstock availability, operating the CDU below optimal capacity would be inefficient, prompting the refinery to align throughput levels with available crude during the maintenance window.
Industry insiders describe the CDU maintenance as strategic and temporary, stressing that it is part of routine optimisation rather than a sign of deeper operational trouble.
The refinery, Africa’s largest with a nameplate capacity of 650,000 barrels per day, continues to adjust unit coordination as it moves from its ramp-up phase toward more stable output.
Gasoline output under strain
Pressure on petrol supply has been further compounded by ongoing work on the refinery’s residue fluid catalytic cracker (RFCC), the primary unit responsible for gasoline production.
While the RFCC remains offline for planned maintenance, Dangote has relied on blending components from other units to sustain petrol output.
However, rising demand for locally refined fuel, combined with reduced operational flexibility, appears to have forced a shift in strategy.
Market participants say the refinery is now prioritising inventory management and internal balancing over fixed commercial supply commitments.
Wider market implications
Nigeria’s downstream fuel market remains highly sensitive, shaped by fluctuating crude prices, logistics bottlenecks, and lingering regulatory uncertainties.
In this environment, refiners and marketers are increasingly adopting flexible trading models to manage risk and preserve margins.
Although regulators insist that nationwide fuel supply remains adequate, supported by strong inventory levels, Dangote Refinery’s trading decisions carry outsized influence.
As a growing pillar of domestic fuel supply, any adjustment in its PMS strategy quickly reverberates across depots, marketers, and pump prices nationwide.
As of the time of reporting, Dangote Refinery has yet to issue further guidance on when new PMS deal recaps will be released or whether revised commercial terms will follow immediately.
Market watchers expect clearer signals once maintenance activities are concluded and demand pressures begin to ease.
Dangote Refinery increases petrol prices
Meanwhile, the mega refinery has announced an increase in the gantry price of Premium Motor Spirit (PMS), also known as petrol, from N699 per litre to N799 per litre, following the end of the festive period.
Source: UGC
As reported by Punch, the management of the refinery announced the price hike in a statement it released on Monday evening.
The refinery noted that petrol will now sell for N839 per litre at MRS filling stations.
Dangote Refinery to shut down CDU for one week
Legit.ng earlier reported that Nigeria’s refining landscape is entering another critical phase as Africa’s largest refinery prepares for a brief but calculated pause.
The 650,000 barrels-per-day Dangote Petroleum Refinery is set to shut down its crude oil distillation unit (CDU) for about one week, a move that reflects operational fine-tuning rather than distress in a fuel-dependent economy.
While any shutdown at the Lekki-based mega refinery tends to spark anxiety across the downstream market, industry data and regulatory assurances suggest the impact on fuel supply will be minimal.
Source: Legit.ng
